CONFIDENCE RETURNING

Auckland Star, Volume LXIII, Issue 225, 22 September 1932, Page 8

CONFIDENCE RETURNING

NEW ZEALAND'S PROSPECTS. * ~——-—"'•...•■'." •''..'-.' i~. GOVERNMENT OPTIMISTIC. DESIRE,TO 'AVOID EXTRA TAXES. ißy Telegraph, — Parliamentary Reporter.) WELLINGTON,- this day/ The Government's confidence that improved trade conditions will result in better prices for the Dominion's produce is. • expressed-- in , the ■, Speech from" the Throne, delivered l by his Excellency, the Governor-General at the opening of Parliament to-dayi '■' / ' ;'. i .His Excellency, in addressing, members of'both Houses, said-the results of - the Qttaw'a.Conference had-been .a matter, of much ■'. satisfaction to-the' Government. Details of. the agreements entered into at Ottawa would be laidbefore Parliament for its consideration.- '■" " ■

"I have been happy to note indications thaV the depression is becoming less severe," eaid his Excellency, "and it is possible to hope for a return to prosperity at no distant date- At the same time tie Government is convinced that the existing economic disturbance can bo overcome only by international action directed, to the abolition of the numerous financial restrictions at present hampering .-world trade. . My Ministers have therefore attached the utmost importance to the, recent conference at Laussanne, as calculated' to enhance confidence and promote commercial intercourse. Complete success, in their opinion, must depend upon international co-operation, and my Ministers hope that-a substantial measure of progress will be achieved by the World Economic Conference, which is now contemplated."

Budget And Economies. In addressing members of the House of Representatives, his Excellency said the fall in the prices of primary products had been so extensive that it had altered all previous staudards-of values, and its suddenness and rapidity caused many borrowers serious embarrassment. The legislation passed during the special session to enable them to maintain production and in order to spread the financial burden as equitably as possible over all sections of the community had afforded considerable relief. The financial ydar had closed with a deficit of £2,140,000, but it was gratifying to note that that amount was more than offset by reserves accumulated in more prosperous times. The National Expenditure Commission had submitted its final report. Many of its recommendations had already been carried out and legislation would be submitted to give effect to others, the adoption of which was considered desirable. Hope Of Greater Revenue. "My Ministers are of the opinion," said his Excellency, "that the conferences at Lausanne and Ottawa, together with the large conversion loan successfully negotiated in Great Britain, have inspired a healthy and promising return of confidence. Improved trade conditions will result in better prices for the Dominion's products in external markets, "*and;.the national income thus, augmented will benefit all classes of pur people. Renewed, activity in business will aid .accelerating economic equilibrium, and r my .Ministers are anxious not to discourage enterprise by imposing upon the community any further burden. Although the budgetary position still demands' anxious consideration, every effort is being made to avoid the necessity for any increase in taxa- ' tion during the current financial year."